DACH Compliance - 10GoodReasons

1. global supply chains and regulations:

• International supply chains and business relationships are subject to complex regulations, laws of different countries and intercultural sensitivity.

• National supply chain laws often differ in detail (e.g. the German Supply Chain Due Diligence Act) and require increased diligence and transparency.

• A compliance breach can quickly lead to reputational damage, which can threaten the existence of companies regardless of their size.

• Customers and business partners increasingly expect ethical and compliant behavior as standard ("by default").

3. competitive advantage:

• A robust compliance management system can serve as a differentiator and build trust with international partners.

• It can facilitate access to new markets and customers.

4. risk minimization:

• Effective compliance management helps to reduce legal and financial risks.

• Smaller companies are often more susceptible to the effects of sanctions or fines.

5. digitization and data protection:

• With increasing digitization, the requirements for data protection of GDPR data and business-related data and thus IT security are increasing, especially in an international context.

6. industry-specific requirements:

• Many industries have their own compliance standards, which also apply to suppliers and service providers. Industry-specific GAP analyses and implementation of compliance structures are essential (compliance management systems)

7. investors and financing:

• Compliance is increasingly being used as a criterion by investors and financial institutions and is an indicator of a solid company

8. increase in efficiency:

• A well-implemented compliance system can optimize internal processes, increase efficiency and therefore be one thing above all in the long-term perspective: economically sustainable.

9. prevention of white-collar crimes such as corruption, embezzlement and fraud:

• International business increases the risk of corruption and fraud, which must be actively countered. In international business, particular attention must be paid to the elephant in the room: the so-called territorial jurisdiction, which means that the different, possibly much stricter rules of the country of the contractual partner play a role.

10. adaptability:

• Compliance measures help companies to adapt more quickly to new market conditions and regulations. Due to the compliance dynamics from Berlin, Brussels and Washington, there is no way around setting up a compliance management system (CMS).